PHDCCI seeks rollback of steep bar fee hike for 5-star hotels in Punjab
Chandigarh, Feb. 26 -- The PHD Chamber of Commerce and Industry (PHDCCI) has urged the Punjab government to roll back the hike in bar licence fees for 5-star hotels under the Excise Policy, warning that the move could hurt investment, employment and the state's tourism growth.
In a representation submitted to minister of tourism and culture affairs, Tarunpreet Singh Sond, the PHDCCI said the cumulative fee for 5-star hotels, which stood at Rs.12.80 lakh in 2021, has been raised to Rs.35.91 lakh in 2026, a hike of nearly 300%, within a span of five years.
The letter, signed by Karan Gilhotra, chair, PHDCCI, Punjab chapter and GS Virk, convener, Punjab State Chapter Regional Tourism and Hospitality Committee, flagged steep revisions in L-3, L-4 and L-5 categories for 5-Star hotels, which have risen from Rs.8 lakh in 2021 to Rs.25 lakh.
The letter said that the bar fee has reportedly been increased from Rs.16 lakh last year to Rs.25 lakh this year.
Highlighting the operating realities of the state's hospitality sector, PHDCCI said Punjab is not positioned as a luxury tourism destination like Rajasthan or Goa and largely caters to religious and transit tourism. "The average daily rate (ADR) of elite 5-star hotels in Mohali and other parts of Punjab generally does not exceed Rs.7,000," the letter added. The chamber cautioned that a uniform or disproportionately high fee structure, without accounting for regional tourism dynamics and revenue potential, places Punjab's hotel industry at a competitive disadvantage, adding that the hotel sector is a major employment generator, providing direct and indirect livelihoods across hospitality, travel, food supply chains, logistics and allied services....
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